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R A

Regional. de BMV:R A Stock Report

Last Price

Mex$114.13

Market Cap

Mex$37.3b

7D

0.7%

1Y

-2.4%

Updated

28 Sep, 2022

Data

Company Financials +
R A fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance4/6
Financial Health6/6
Dividends3/6

R A Stock Overview

Regional S.A.B. de C.V. provides various banking products and services.

Regional. de Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Regional. de
Historical stock prices
Current Share PriceMex$114.13
52 Week HighMex$147.98
52 Week LowMex$90.38
Beta1.25
1 Month Change5.77%
3 Month Change20.02%
1 Year Change-2.40%
3 Year Change26.54%
5 Year Changen/a
Change since IPO-3.16%

Recent News & Updates

Shareholder Returns

R AMX BanksMX Market
7D0.7%-2.8%-2.7%
1Y-2.4%-3.7%-5.9%

Return vs Industry: R A exceeded the MX Banks industry which returned -5.2% over the past year.

Return vs Market: R A exceeded the MX Market which returned -6.2% over the past year.

Price Volatility

Is R A's price volatile compared to industry and market?
R A volatility
R A Average Weekly Movement4.1%
Banks Industry Average Movement4.3%
Market Average Movement3.9%
10% most volatile stocks in MX Market6.9%
10% least volatile stocks in MX Market2.6%

Stable Share Price: R A is not significantly more volatile than the rest of MX stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: R A's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19944,924Manuel Gerardo Rivero Zambranohttps://www.regional.mx

Regional S.A.B. de C.V. provides various banking products and services. It offers financial services and products, such as loans, point-of-sale terminals, insurance products, and other products for small business and entrepreneurs; loans for working capital or investment projects for medium-sized businesses; credit cards, personal loans, automobile finance, and mortgages; savings and investment products; and financial leasing services. The company also provides factoring, and online and mobile banking services.

Regional. de Fundamentals Summary

How do Regional. de's earnings and revenue compare to its market cap?
R A fundamental statistics
Market CapMex$37.31b
Earnings (TTM)Mex$4.10b
Revenue (TTM)Mex$10.55b

9.1x

P/E Ratio

1.6x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
R A income statement (TTM)
RevenueMex$10.55b
Cost of RevenueMex$0
Gross ProfitMex$10.55b
Other ExpensesMex$6.45b
EarningsMex$4.10b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)12.50
Gross Margin100.00%
Net Profit Margin38.86%
Debt/Equity Ratio111.2%

How did R A perform over the long term?

See historical performance and comparison

Dividends

10.6%

Current Dividend Yield

n/a

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is R A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for R A?

Other financial metrics that can be useful for relative valuation.

R A key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

How does R A's PE Ratio compare to its peers?

R A PE Ratio vs Peers
The above table shows the PE ratio for R A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.5x
BBAJIO O Banco del Bajío Institución de Banca Múltiple
9.7x4.6%Mex$59.7b
BSMX B Banco Santander México Institución de Banca Múltiple Grupo Financiero Santander México
6.2x8.2%Mex$137.7b
GFINBUR O Grupo Financiero Inbursa. de
8.8x4.8%Mex$198.3b
GFNORTE O Grupo Financiero Banorte. de
9.4x8.6%Mex$377.6b
R A Regional. de
9.1x7.7%Mex$37.3b

Price-To-Earnings vs Peers: R A is expensive based on its Price-To-Earnings Ratio (9.1x) compared to the peer average (8.5x).


Price to Earnings Ratio vs Industry

How does R A's PE Ratio compare vs other companies in the South American Banks Industry?

Price-To-Earnings vs Industry: R A is expensive based on its Price-To-Earnings Ratio (9.1x) compared to the South American Banks industry average (7.3x)


Price to Earnings Ratio vs Fair Ratio

What is R A's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

R A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.1x
Fair PE Ratio9.8x

Price-To-Earnings vs Fair Ratio: R A is good value based on its Price-To-Earnings Ratio (9.1x) compared to the estimated Fair Price-To-Earnings Ratio (9.8x).


Share Price vs Fair Value

What is the Fair Price of R A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: R A (MX$114.13) is trading below our estimate of fair value (MX$140.37)

Significantly Below Fair Value: R A is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Future Growth

How is Regional. de forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


7.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: R A's forecast earnings growth (7.7% per year) is above the savings rate (7.2%).

Earnings vs Market: R A's earnings (7.7% per year) are forecast to grow slower than the MX market (9.5% per year).

High Growth Earnings: R A's earnings are forecast to grow, but not significantly.

Revenue vs Market: R A's revenue (8.5% per year) is forecast to grow faster than the MX market (6.3% per year).

High Growth Revenue: R A's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: R A's Return on Equity is forecast to be low in 3 years time (18.9%).


Discover growth companies

Past Performance

How has Regional. de performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


5.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: R A has high quality earnings.

Growing Profit Margin: R A's current net profit margins (38.9%) are higher than last year (34%).


Past Earnings Growth Analysis

Earnings Trend: R A's earnings have grown by 5.7% per year over the past 5 years.

Accelerating Growth: R A's earnings growth over the past year (34.3%) exceeds its 5-year average (5.7% per year).

Earnings vs Industry: R A earnings growth over the past year (34.3%) underperformed the Banks industry 42.9%.


Return on Equity

High ROE: R A's Return on Equity (18%) is considered low.


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Financial Health

How is Regional. de's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: R A's Assets to Equity ratio (8x) is low.

Allowance for Bad Loans: R A has a sufficient allowance for bad loans (172%).

Low Risk Liabilities: 79% of R A's liabilities are made up of primarily low risk sources of funding.

Loan Level: R A has an appropriate level of Loans to Assets ratio (67%).

Low Risk Deposits: R A's Loans to Deposits ratio (97%) is appropriate.

Level of Bad Loans: R A has an appropriate level of bad loans (1.3%).


Discover healthy companies

Dividend

What is Regional. de current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


10.65%

Current Dividend Yield

Dividend Yield vs Market

Regional. de Dividend Yield vs Market
How does Regional. de dividend yield compare to the market?
SegmentDividend Yield
Company (Regional. de)10.6%
Market Bottom 25% (MX)2.4%
Market Top 25% (MX)6.6%
Industry Average (Banks)5.3%
Analyst forecast in 3 Years (Regional. de)7.6%

Notable Dividend: R A's dividend (10.65%) is higher than the bottom 25% of dividend payers in the MX market (2.37%).

High Dividend: R A's dividend (10.65%) is in the top 25% of dividend payers in the MX market (6.63%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, R A has been paying a dividend for less than 10 years.

Growing Dividend: R A's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: R A's dividends in 3 years are forecast to be well covered by earnings (48.9% payout ratio).


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

16.4yrs

Average board tenure


CEO

Manuel Gerardo Rivero Zambrano (42 yo)

16.67yrs

Tenure

Lic. Manuel Gerardo Rivero Zambrano serves as Chief Executive Officer at Regional, S.A.B. de C.V.(formerly, Regional S.A.B. de C.V. (formerly known as Banregio Grupo Financiero, S.A.B de C.V.)). He served...


Board Members

Experienced Board: R A's board of directors are seasoned and experienced ( 16.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

What is the ownership structure of R A?
Owner TypeNumber of SharesOwnership Percentage
Institutions73,939,35622.5%
Individual Insiders77,719,72523.7%
General Public176,272,25253.8%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 43.37% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10.3%
Manuel Gerardo Rivero Santos
33,776,927MX$3.9b0%no data
9.4%
Jaime Alberto Rivero Santos
30,825,545MX$3.5b0%no data
3%
Manuel Gerardo Rivero Zambrano
9,837,940MX$1.1b0%no data
2.73%
The Vanguard Group, Inc.
8,963,934MX$1.0b1.33%no data
2.42%
Norges Bank Investment Management
7,942,058MX$906.4m0%0.01%
2.35%
BlackRock, Inc.
7,712,584MX$880.2m-1.01%no data
1.7%
J.P. Morgan Asset Management, Inc.
5,589,930MX$638.0m0.06%0.01%
1.44%
Van Eck Associates Corporation
4,716,108MX$538.2m-14.2%0.06%
1%
Alejandra Roel
3,279,313MX$374.3m0%no data
0.98%
Dimensional Fund Advisors LP
3,203,994MX$365.7m-1.84%no data
0.85%
Grandeur Peak Global Advisors, LLC
2,787,610MX$318.1m43.15%0.36%
0.85%
Deutsche Asset & Wealth Management
2,781,025MX$317.4m0%0.01%
0.75%
Invesco Ltd.
2,459,591MX$280.7m0%no data
0.74%
Compass Group LLC
2,442,922MX$278.8m0%1.12%
0.7%
RBC Global Asset Management Inc.
2,300,041MX$262.5m-22.29%0.01%
0.67%
Larrainvial Administradora De Fondos S.A.
2,182,344MX$249.1m96.74%1.73%
0.58%
LarrainVial Asset Management Administradora General de Fondos SA
1,911,697MX$218.2m3.75%1.1%
0.51%
abrdn plc
1,657,483MX$189.2m-0.56%0.01%
0.51%
Moneda S.A. Administradora General de Fondos
1,656,999MX$189.1m208.11%0.77%
0.44%
BNY Mellon Asset Management
1,428,141MX$163.0m2.45%no data
0.42%
Morgan Stanley Investment Management Inc.
1,384,488MX$158.0m0%0.01%
0.3%
William Blair Investment Management, LLC
981,025MX$112.0m-16.55%0.01%
0.25%
Wasatch Advisors Inc
810,562MX$92.5m5.2%0.02%
0.24%
American Century Investment Management Inc
798,894MX$91.2m-2.13%no data
0.24%
Handelsbanken Asset Management
790,000MX$90.2m0%0.01%

Company Information

Regional S.A.B. de C.V.'s employee growth, exchange listings and data sources


Key Information

  • Name: Regional S.A.B. de C.V.
  • Ticker: R A
  • Exchange: BMV
  • Founded: 1994
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: Mex$37.312b
  • Shares outstanding: 327.93m
  • Website: https://www.regional.mx

Number of Employees


Location

  • Regional S.A.B. de C.V.
  • Avenue Pedro Ramirez Vazquez #200-12
  • Parque Corporativo Ucaly
  • San Pedro Garza Garcia
  • Nuevo Leon
  • 66278
  • Mexico


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
R ABMV (Bolsa Mexicana de Valores)YesSeries A Class I SharesMXMXNApr 2018

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.